European stocks edged higher at the start of the week, with the STOXX 50 rising 0.2% and the STOXX 600 adding 0.1%, following last week's strong rally that lifted both benchmarks to fresh record highs.

Investors shifted their focus to corporate developments and company-specific news ahead of the start of the earnings season.

Travel and leisure stocks led the gains, with EasyJet surging nearly 10% after the airline agreed in principle to a £5.5 billion takeover bid from US private equity firm Castlelake.

Luxury shares also advanced, with LVMH (+1.3%), L'Oréal (+1.2%), and Hermès (+0.9%) posting solid gains.

Meanwhile, the technology sector lagged, weighed down by declines in ASML Holding (-1.5%) and Infineon Technologies (-3.2%).